South Asia Scrap Market Sees Mixed Trends, Turkiye Faces Bigger Drop!

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The imported scrap market in South Asia has been going through a mixed phase, with prices dipping slightly in key regions, while Turkiye saw a more noticeable drop.

In South Asia, UK-origin shredded scrap offers fell by up to $4 per tonne over the past few days. Prices dropped by $2/t in India, $3/t in Bangladesh, and $4/t in Pakistan. Meanwhile, Turkiye saw a sharper fall of $7/t for US-origin HMS 80:20 scrap.

India: Mixed Market with Buyer Caution

India’s scrap market had a mixed tone. Domestic steel prices improved slightly, encouraging some bookings. However, concerns about the weakening rupee and falling global scrap prices, especially from Turkiye, kept many buyers on edge.

• UK-origin shredded scrap was offered around $390/t CFR Nhava Sheva, while buyers were aiming lower at $380/t.
  
• HMS 80:20 from Australia was booked at $362-363/t.
  
• Mozambique HMS 90:10 was offered at $370/t, with buyers bidding around $364-365/t.
  
• UK sheared HMS traded between $350-355/t.
  

The availability of cheaper domestic scrap and direct reduced iron (DRI) further reduced interest in imported materials.

Pakistan: Quiet After Eid

Pakistan’s market remained slow after Eid. Local sales were weak, and global scrap prices didn’t help much. Turkish scrap price drops and cheap Chinese steel offers added pressure.

• UK/Europe shredded scrap offers hovered around $390/t CFR, with some deals at $383-385/t.
  
• Dubai HMS was offered at $360-365/t.
  
• Local scrap prices were stable at PKR 145,000-148,000/t delivered, and rebar was selling slowly at PKR 230,000-240,000/t.
  

Most mills are waiting for clearer market signals and the upcoming national budget before making new purchases.

Bangladesh: LC Issues and Cautious Buying

In Bangladesh, activity remained slow due to ongoing issues with opening letters of credit (LCs) and limited foreign exchange. Despite strong remittance and export inflows in March, mills were cautious.

• Shredded scrap from Australia/New Zealand was offered at $390-392/t CFR, with buyers bidding around $385/t.
  
• Australian HMS 90:10 was offered at $385/t CFR, with some deals at $371-372/t.
  
• Japanese rebar bundles were at $395/t, with earlier bookings at $390-392/t.
  
• Singapore-origin HMS 80:20 was offered at $375/t CFR, with bids below $365/t.
  
• Japanese H2 bulk was offered at $365/t CFR, but buyers stayed away.
  
• Busheling scrap was heard at $395-400/t CFR with no active buyers.
  

Overall, concerns about inflation, LC restrictions, and political uncertainty kept market sentiment low.

Turkiye: Prices Tumble Sharply

Turkiye saw the biggest drop in imported scrap prices, with US-origin HMS 80:20 falling by $7/t compared to Friday’s close, and a total drop of $25-30/t since early April.

• One Baltic-origin cargo was booked at $350/t CFR, but many believe this price isn’t sustainable.
  
• Sluggish demand, falling billet prices, and lower collection costs in Europe (Benelux) all contributed to the decline.
  

Mills are holding back due to weak rebar sales, uncertainty around tariffs, and high energy costs, making sellers lower their offers even further.

Current Price Highlights

• India: UK-origin shredded assessed at $385/t CFR Nhava Sheva (down $2/t)
  
• Pakistan: UK-origin shredded at $386/t CFR Qasim (down $4/t)
  
• Bangladesh: UK-origin shredded at $390/t CFR Chattogram (down $3/t)
  
• Turkiye: US-origin HMS 80:20 at $358/t CFR (down $7/t)

Source: www.bigmint.co